Legal Battle Ensues as 16 Republican-Led States Contest Biden’s Temporary Halt on LNG Export Approvals
In a move that has sparked controversy and legal action, 16 Republican-led states, including Texas, Louisiana, and Alabama, have filed a lawsuit challenging President Joe Biden’s temporary pause on approving applications to export liquified natural gas (LNG). The states argue that the Biden administration’s ban on LNG exports is not justified by any statutory authority and undermines the industry while disrupting their economies.
The lawsuit, filed in the U.S. District Court for the Western District of Louisiana, accuses the administration of disregarding statutory mandates and flouting the normal regulatory process. It claims that the ban on LNG exports leaves the states with no choice but to turn to the courts to enforce the law.
The states also highlight that the Department of Energy (DOE) concluded in July 2023 that imposing a ban on LNG exports was unlawful and lacked factual or legal basis before announcing the pause. They argue that the administration is ignoring decades of agency policy and the presumption in favor of exports outlined in the Natural Gas Act.
The lawsuit asks the court to declare the LNG export ban unlawful and overturn it, citing the profound national importance and billions of dollars at stake. The states also raise concerns about national security implications and the potential impact on proposed legislation and public attention surrounding the issue.
The Biden administration’s halt on approving new licenses to export LNG to countries without Free Trade Agreements (FTA) with the United States has raised concerns among Republican lawmakers. They argue that this decision has dire national security and foreign policy implications, particularly at a time when tensions are rising in Ukraine and the Middle East.
The United States currently has FTAs with 20 countries, including Israel, which is engaged in a conflict with Hamas, and Taiwan, facing potential military aggression from China. Those without FTAs, like Ukraine, rely on LNG exports from the United States for a reliable fuel supply.
While environmentalists and youth groups have been urging the administration to slow down or halt LNG export approvals due to concerns about pollution and reliance on fossil fuels, many Republican lawmakers believe that the Biden administration’s decision is economically and strategically dangerous. Over 150 Republicans have called on President Biden to end the ban and approve pending applications to increase the global supply of natural gas.
The pause on LNG exports has also raised concerns about global energy security, as 87 percent of U.S. LNG exports in December 2023 went to the European Union, the United Kingdom, and Asian markets.
As the legal battle ensues, it remains to be seen how the court will rule on the constitutionality of the Biden administration’s temporary halt on LNG export approvals. The outcome will have significant implications for the industry, national security, and the global energy market.
